Carnegie Wave secures USD 6.1m for wave energy project

Nov 28, 2012 - Australian wave technology developer Carnegie Wave Energy Ltd (ASX:CWE) today said it had wrapped up AUD 5.8 million (USD 6.1m/EUR 4.7m) in government and private financing for its Perth wave energy project in Western Australia.

As much as AUD 3.5 million of the funding was raised through the issue of 117 million Carnegie shares at AUD 0.03 apiece to individual and sophisticated investors, most of whom Carnegie shareholders. The share issue was led by private investment firm 88 Green Ventures which boosted its stake to 9.7% from 6.1%. The issue price represents a 23% discount to the 15-day volume wighted average trading price of Carnegie's stock.

The remaining AUD 2.26 million of the funding resulted from a redistribution of the Low Emissions Energy Development (LEED) grant of the Western Australia government for Carnegie's up-to-2-MW Perth wave energy project, located at Garden Island. The amount raised the total government grant for the project to AUD 17.7 million. Carnegie added that it had so far received AUD 2.38 from the LEED fund for the development of its CETO wave power technology.

Carnegie is to complete detailed design and obtain environmental and government approvals for the Perth project by the end of 2012, it said. It will start power generation from the wave plant in the end of 2013, supplying it to the Australian Department of Defense.

(AUD 1 = USD 1.045/EUR 0.809)

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